![]() ![]() The C fund has returned 13.59% annually over the past 10 years. While you are paying back your loan, you’re losing out on the opportunity to grow your investments while the loan amount is out of the TSP. Considering that the current 15 year mortgage is around 2.5% this seems like a pretty great deal. In September 2020, the interest rate was a paltry 0.625%. The interest rate on the TSP loan is tied to the G-fund interest rate. In this case, you are essentially loaning yourself money. It is possible to take a loan from your TSP balance. That being said, there are three options: You may wish to consult with a financial advisor to understand the consequences of these withdrawals. These withdrawals deplete your retirement savings and could seriously affect your retirement. While you can withdraw money from the TSP while you work for the government, you should know the consequences. The TSP is a retirement account but it is possible to get your money out of the TSP while you’re still working for the government. Can I withdraw my TSP Early? How to withdraw money from your TSP during federal service Therefore, if you have a portfolio of 70% C Fund, 10% I Fund, 20% G Fund and withdraw $10,000, the TSP will sell $7,000 of C Fund, $1,00 of I Fund, and $2,000 of G Fund. An important note about TSP withdrawalsĪs of 2021, it is still not possible to select which funds are sold when you withdraw from the TSP. If you make a purchase after clicking on a link, I get a small percentage of the sale at no additional cost to you. Please do not confuse my personal blog for financial advice, tax advice or an official position of the U.S. I’m ready to make a withdrawal, now what?.How to withdraw money from the TSP in retirement.How to withdraw money from the TSP if you leave the government before retirement.Can I withdraw my TSP Early? How to withdraw money from your TSP during federal service.An important note about TSP withdrawals.Get Gov Worker’s top 4 tips for federal employees! Here is a complete guide on how to withdraw money from the TSP for all circumstances. ![]() Or maybe you’re considering a hardship withdrawal but don’t know where to start. Perhaps you’ve reached retirement age and want to make a withdrawal as part of your federal retirement strategy? However, what happens when you need to get the money out of your traditional or Roth TSP? The TSP has some of the lowest fees in the industry and has a very generous 5% government match. If you’ve read this blog before, you know I’m a big fan of the TSP (or Thrift Savings Plan). ![]()
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